STOCKHOLM, Sweden, Feb. 18, 2002 (PRIMEZONE) -- SCA has acquired, through its subsidiary Tuscarora, the US protective packaging company, Mid-Lands Chemical Company Inc. for USD 16.8 M (approximately SEK 175 M) on a debt-free basis. The acquisition price corresponds to 5.3 times the operating surplus (EBITDA), based on earnings for 2001. The acquisition is calculated to provide a CVA index of about 1.8, thereby exceeding SCA's return requirement by at least 80 percent.
Mid-Lands is one of the leading manufacturers in the US of artificial ice and other refrigerants within the "cold-chain" segment, thus complementing well SCA's previous acquisition of ISC and Polyfoam Packers. The company's products are sold primarily to pharmaceuticals and diagnosis companies, but also to companies that manufacture and distribute food products sensitive to temperature. With seven sites, the company currently operates throughout the US market. Following the acquisition of Mid-Lands, sales of packaging for the transportation of temperature-sensitive products will correspond to 25 percent of Tuscarora's sales. This is a segment that has shown favourable growth and profitability, despite the generally weak market conditions in the US. Mid-Lands has 50 employees and annual sales of approximately USD 11 M.
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